A colorful term coined by EOG Resources Inc. (NYSE:EOG) last year to describe 16 breakthrough Eagle Ford horizontal oil wells producing in excess of 2,500 barrels of oil per day ? plus additional liquids and natural gas ? appears to have stuck: “monster wells.”
According to a recent report by Morgan Stanley Research, Eagle Ford IP rates shot up in year-end 2012 and “are more repeatable and not a fluke.” The report used data from the Texas Railroad Commission.
As it turns out, a lot was up for EOG at year-end:
Morgan Stanley predicts 2013 growth will be the “more critical factor” than fourth-quarter 2012 results, and predicts EOG’s production to grow by 21% (driven by Eagle Ford growth of 61%) year-over-year, “but [we] believe our estimate is conservative.”
The research firm also predicts:
The purchase price consists of $34 million at closing and $11 million over time.
The company acquired producing and nonproducing assets.